Everything You Need To Know About MetaTrader 5 As A Trader As Well As A Broker
MetaTrader 5 (MT5) is a well-known multi-asset trading and research software platform, which can be used standalone or while connected to compatible brokers. From performing qualitative and fundamental analysis to quantitative and technical analysis, this platform has deep in-depth functionality with various add-ons through its massive marketplace of third-party services. MetaTrader has successfully emerged as the core for algorithmic trading development, with several million users across the world.
MetaQuotes Software Corp. introduced the FX chart in 2000, which was a reliable, easy-to-use, and functional trading platform for the forex market. Back in 2000, it was a revolutionary platform as it was a cheaper and more high-performing software in comparison to its counterparts.
It then developed MetaQuotes, which allowed trading application development, utilising the MQL programming language. The MetaTrader brand came into existence in 2003. Eventually, MetaTrader 4 and MetaTrader 5 joined suit.
MetaTrader 4 was immediately considered to be a benchmark for other similar companies. It brought to the market a distributed architecture, outstanding performance, remarkable overall functionality, and mobile trading options. The release of this software marked the commencement of a new era of algorithmic trading, and its fans were finally offered trading robots.
In 2010, the latest ultra-powerful multi-asset MetaTrader 5 platform was officially released. The noteworthy feature of this platform is its ability to provide trading for almost every financial market – the stock market, futures market, and forex. It is a preferred platform for high-frequency, algorithmic, automated trading programs, black box with its enhanced high-level object-oriented programming language, smoother back-testing functionality, and logic framework.
Contrary to popular belief, MetaTrader 5 is not an upgraded version of MetaTrader 4. MetaTrader 5 was introduced in 2010 to also contain non-forex markets, notable futures, commodities, and stocks, which are centralised trading exchanges, whereas MetaTrader 4, started in 2005, was specifically for decentralised forex markets. Therefore, MetaTrader 5 is not an upgrade for MetaTrader 4 since they address different markets, end-users, are not backward compatible, and use different programming languages (MTQL 4, MTQL 5).
MetaQuotes Language 5 (MQL5) is an advanced language crafted for developing technical indicators, utility applications, and trading robots that automate financial trading, which have been developed for MT5 by MetaQuotes Software Corp.
The language syntax is similar to C++, allowing programmers to create applications in the OOP (object-oriented programming) style. Along with MQL5, the MT5 package includes MetaEditor IDE, with top-notch code writing tools such as snippets, templates, profiling, debugging, auto-completion tools, and MQL5 storage allowing file versioning as well.
You can visit the MQL5 community website to go through a plethora of articles and a huge free CodeBase. The articles discuss all aspects of modern trading, such as statistics and analysis, neural networks, arbitrage, high-frequency trading, use of trading robots, optimisation of trading strategies, etc.
Types of MQL5 Applications
Expert Advisor: An automated trading system attached to a chart. An Expert Advisor consists of event handlers to manage predetermined events that activate the execution of apt trading strategy elements. Along with calculating trading signals placed on implemented rules, Expert Advisors are able to automatically conduct trade and send them directly to a trading server.
Custom Indicator: A technical indicator created by a user along with a standard indicator combined with the trading platform. Standard and custom indicators cannot trade automatically, but they implement analytical functions. They can use values of other indicators for estimations and can be called from Expert Advisors.
Script: A program for individual execution of an action. Scripts do not administer any event except for trigger, unlike Expert Advisors.
Service: A program that does not need to be bound to a chart to work. Services do not manage any event except for trigger, like scripts.
Library: A set of custom functions. It is intended to distribute and store commonly used algorithms of custom programs.
Include File: A source text of the most commonly used blocks of custom programs. Such files can be admitted to the source texts of scripts, Expert Advisors, libraries, and custom indicators at the compiling stage. Using included files is preferable to using libraries due to the additional burden at calling library functions.
Pricing of MetaTrader 5
MT5 software is free to download if you are a trader. You can choose to download it directly from the website or your broker’s website.
For brokers, it is available in three options: entry, standard, and enterprise licence. While entry licence offers 1,000 real accounts, the standard one provides 25,000 default real accounts, and 200,000 default read accounts are offered in the enterprise licence.
Compatibility of MetaTrader 5
It can run on Windows 2008, 7, 8, or 11 and needs a processor with SSE2 support; at least Pentium 4/Athlon 64. On macOS, it can be run using Wine, which is a non-chargeable and open-source software application that lets applications designed for Windows to run on Unix-like OS. Also, keep in mind:
- It is recommended that you utilise the open-source software PlayOnMac, free Wine-based software that offers easy installation and running of Windows application on macOS.
- To run Unix OS or MT5, the trading platform can be used and installed on systems that run Ubuntu using Wine.
- You can download MT5 for Android from Google Play to access the mobile platform. For iPad/iPhone, you can download them all from the AppStore or on iTunes.
- You need an iPhone 4S or a higher variant; iPad 2 or a newer version; or at least an iPod Touch 5. Your Apple device should run on iOS 8.0 or a higher version.
Features of MetaTrader 5 for Traders
Successful traders have selected the MetaTrader 5 multi-asset platform for forex trading, futures, and exchange instruments. It offers advanced trading functions along with superior tools for fundamental and technical analysis. MT5 can also trade automatically by employing trading signals and trading robots. The platform has both desktop and mobile versions and can be accessed anytime from any device.
Offers Fundamental Analysis
- You can start exploring MT5’s fundamental tools as soon as you fill in your login details. These include access to an economic calendar and financial news and can be used to guess future price shifts in instruments on the platform.
- Additionally, you will have access to breaking news reports from global news outlets and several economic indicators.
Has An Impressive Trading System
- The MT5 trading system provides a separate accounting of trades and orders plus the support of every type of trading orders as well as execution modes.
- It also has an advanced Market Depth feature (with Time & Sales information and a tick chart).
- The platform supports market scanners that let you quickly identify potential opportunities.
- It supports two accounting modes: hedging – used for forex trading; netting – adopted on exchange markets.
- With the Market Depth feature and One Click Trading function, MT5 allows its users to sell and buy currency pairs, futures, and equities in one click.
- It also has ‘Take Profit’ and ‘Stop Loss’ options that help in minimising losses as well as securing profits.
Features Trading Strategy Tester
- It works by operating the strategy against past price data, automatically performing trades in line with its algorithm.
- As this can highlight possible flaws in a strategy before you apply it in your live account, you could save significant capital.
- MT5 Strategy Testers utilise multiple ways to discover the ideal speed/quality ratio, such as, every tick based on real ticks mode that gives effective results, and open prices only mode that offers an approximate and quick estimation.
- Strategy Tester’s important element is its optimisation capabilities, which tests an algorithm with numerous parameters while selecting optimal values. However, optimising sophisticated robots could be a highly time-consuming process.
Allows You To Benefit From Trading Signals
- Trading signals is a service that allows the automatic real-time imitating of trading operations from one trading account to another. In simpler terms, many successful traders offer free public access to the deals they perform on financial markets, while some charge a meagre amount, and when you subscribe to such signals, the same deal is automatically performed on your account.
- Hundreds of paid and free signals are enlisted on your MQL5 showcase and in the relevant tab of your trading platform.
- You can opt for signals running on real or demo accounts offered by a range of signal providers sorted by trading results.
- You simply need to select a signal provider, connect to the signal, and make the professional trades yours.
- You can be sure about the credibility of these providers since they are screened over their results in the last month.
- Pivot points indicators
- Volume indicators
- Time zones indicators
- Volatility indicators
- Android custom indicators
- Buy/sell signal indicators
- View up to 100 charts, along with 21 time frames, ranging from 1 minute to 1 month.
Types of Trading Offered by Metatrader 5
- Web Trading
The MT5 web platform just needs an internet connection and allows you to trade in exchange, futures, and forex markets from any operating system and browser. You can analyse quotes of financial instruments, access your trade history, and perform trading operations from any system powered by macOS, Windows, or Linux.
The web platform supports placing pending orders, giving trade orders with a single click from Market Depth, and executing complete market analysis using 30 technical indicators and 24 graphical objects. Web trading lets you access all these features at any time from any browser.
The web trading platform also provides maximum data protection along with high versatility, while complete transmitted information is safely encrypted. It also upholds an enhanced protection method by using two-factor authentication.
- Mobile Trading
You can download a free MetaTrader 5 application on your iPad, iPhone, or Android phone. Having a mobile version of this software helps you stay updated all the time. It is the most popular trading platform and it offers everything you need to perform trading operations, set Take Profit and Stop Loss level, as well as send pending orders.
The mobile version also has a One Click Trading option that lets you send trade orders straight from Market Depth window or the price chart. The application allows a professional technical analysis of currency and transfer quotes, using 24 analytical objects and 30 built-in indicators.
- Algorithmic Trading
Among the most exciting facilities provided by MetaTrader 5 is algorithmic trading, which allows for automated trading using robots. These applications can evaluate the market and undertake trading operations according to a particular trading strategy.
The MT5 platform offers a specifically designed MQL5 development environment for this type of trading. MQL5 IDE lets programmers and traders with any skill level debug, test, develop, and optimise trading robots.
For experienced developers, it provides high-end responsibilities such as MQL5, the strategy tester with real tick support, the MetaEditor, and the Language Reference with an intricate description of every language construction.
If you are a novice or an inexperienced trader, for algorithmic trading you should use the MQL5 Wizard. This user-friendly assistant will aid you to construct an uncomplicated robot of ready-made blocks.
If you are not comfortable with programming, you can use ready-made solutions. You can also buy technical indicators and trading robots from the MetaTrader Market, order from professional developers, or download for free from the Code Base.
MetaTrader 5 for Brokers
If you want to begin a brokerage business, this multi-asset institutional platform will allow you to run your business in several financial markets including futures, stock exchange, and forex markets.
MetaTrader 5 is a full-cycle program that consists of all elements that a firm may require to offer comprehensive brokerage services without needing any additional software. This platform:
Offers A Multi-Asset Trading Program
This platform supports operations with several asset classes, including futures and forex. With MetaTrader 5, your traders are provided with powerful and convenient trading functionality.
The adaptable trading system, with support for all order types and Market Depth, lets traders use any trading strategy on any financial market. The platform offers the hedging option for a fully-fledged forex trading and netting system for trading exchange instruments.
Additionally, you can provide professional fundamental analysis and technical tools to your traders. MetaTrader 5 ecosystem consists of an impressive set of services and tools, through which your traders can utilise trading robots, trade from any browser and mobile, and copy deals of successful traders.
Has White Label Programs
It provides broad opportunities for letting you widen your business through financial organisations and affiliate programs. With this platform, you can introduce a plethora of trade execution and operational services to your Introducing Brokers (IB) through the White Label Program as well as a full-fledged commissioning system.
You can also offer liquidity services and Direct Market Access (DMA) through the MetaTrader 5 system.
Has Enhanced Back-End
The complete MetaTrader 5 structure is organised to ensure maximum flexibility for your business. Its ecosystem offers sets of parameters and configurations so that platform conduction can be arranged as per your specific business objectives.
With this platform, you can operate several business models. You can delegate role-based managers such as dealers, accountants, managers, risk managers, etc., along with effectively handling trade conditions (contract terms, margin requirements, swaps, credit limits, spreads, trade sessions, commissions, markups, and other trading parameters).
It offers preventive mechanisms to diminish risks, and tools for automatic supervising of technological, margin (credit/limit), financial, and operational risks. The platforms also have a range of risk management tools for every asset class to meet the needs of different business models.
With MetaTrader 5, you can adjust and configure settings as per operating, structural, and regulatory needs of your dealing desks. The platform framework provides for access permissions of multiple levels (you can assign dealers, senior dealers, risk managers, etc.). It also supports multiple dealer operations for diverse market segments and client groups, and offers complete operative control for all orders, open positions, incoming requests, and more.
It also maintains corporate actions such as bulk payments to your clients based on their current positions. This feature is used for paying and calculating dividends and bonuses to shareholders. It also supports reverse split or reversal operation of consolidation and division of tick and bar history.
By using this platform’s APIs (Application Programming Interfaces), the platform capabilities can be expanded even more. You can use APIs to customise MetaTrader 5 components, integrate the complete platform with your post-trading and trading systems, or complement their functionality. Purposes of MetaTrader 5 API are:
- Report API widens the reports that are made by the MetaTrader 5 trade servers.
- Gateway API is used for the integration of other trading systems with this platform and the formation of custom data feeds.
- Server API can aid you to add functions to MT5 Server and MT5 History Server.
- Manager API lets you develop management utilities, custom administration, or your own manager terminal.
- Web API is utilised by integrating the platform with web resources as well as other services of the company.
Provides Gateways For ECN And Connection To Exchanges
MT5 delivers total solutions for assimilation with common liquidity providers on the forex market, and allows direct connectivity to worldwide financial exchanges. All gateways are simple to operate. They ensure incomparable control and flexibility for your business.
A gateway is a combined solution that facilitates brokers to immediately hedge their risks linked with clients’ operational risks (STP) via interaction with more MT5 brokers. By adopting the gateways, brokers can offer their traders access to several financial exchanges via other exchange participants.
Gives Powerful Security And Performance
Higher speed and performance characters enable serving additional traders setting for lesser needs on the hardware. Currently, MT5 is among the most efficient, cost-effective, and fastest platforms in the world.
MT5 is based on a delegated architecture, where different functions are conducted on different servers. This eliminates architectural limits and enables its performance to be increased by distributing more servers within the platform. By increasing servers, you can enhance the overall performance of the platform or decrease the burden on its individual components. The elasticity of the system offers a perfect solution to the development problem enabling the exercising of control over the platform and only keeping the best quality of brokerage services.
MT5 also provides a strong security system. Data exchange between the system factors is conducted over an encrypted connection. It has a built-in advanced authentication system to ensure total protection to trade accounts. All the system databases have backup and recovery options. Additionally, a distributed architecture advances the platform resistance to several hacker attacks.
Offers Flexible Licensing Policy
You can choose and buy the licence type that is suitable for your business model, future development plans, and current volumes.
This flexible approach enables you to buy an initial licence and instantly enter the financial market as a novice broker with minimal investment. You can further upgrade your licence and grow.
MetaTrader has been a highly used platform since its inception. MetaTrader 5 is a flexible trading system that delivers unparalleled functionality and the best opportunities for trading and brokerage.
It allows traders to customise the platform according to their needs as well as to conduct trade through any web browser and mobile phone having an internet connection. Moreover, its algorithmic trading and copy trading allows traders to trade without indulging much in the trading details and following the footsteps of successful traders. This is especially useful for novice traders who want to learn from past experiences of successful traders.
Today, MetaTrader 5 is perhaps the best platform for offering brokerage services, as it presents a universal solution for forming new brokerage companies as well as entering new financial markets. Additionally, it allows the broker to offer traders to trade in all markets – futures, forex, and stock markets.